Business Wire | Jan 18, 2022 04:00PM EST

Hancock Whitney Reports Fourth Quarter 2021 EPS of $1.55

Jan. 18, 2022

GULFPORT, Miss.--(BUSINESS WIRE)--Jan. 18, 2022--Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the fourth quarter of 2021. Net income for the fourth quarter of 2021 totaled $137.7 million, or $1.55 per diluted common share (EPS), compared to $129.6 million, or $1.46 per diluted common share, in the third quarter of 2021. The fourth quarter of 2021 included ($4.9) million, or ($0.04) per share after-tax, of net nonoperating income items, mostly from storm-related insurance proceeds. The third quarter of 2021 included ($1.4) million, or ($0.01) per share after-tax, of net nonoperating income items, related to Hurricane Ida expenses offset by severance reversal and a gain from the sale of the remaining Hancock Horizon Funds. Excluding the impact of these nonoperating items in both quarters, EPS would be up $0.06 linked-quarter. The company reported net income for the fourth quarter of 2020 of $103.6 million, or $1.17 per diluted common share. There were no nonoperating items in the fourth quarter of 2020.

Fourth Quarter 2021 Highlights

* Pre-provision net revenue (PPNR) totaled $134.2 million, down slightly, linked-quarter * Core loan growth of $652.5 million, more than offset the impact of $404.3 million in PPP loan forgiveness leading to an overall increase in total loans of $248.3 million linked-quarter * Deposits increased $1.3 billion as noninterest-bearing demand deposits increased $739.4 million and interest-bearing accounts increased $518.3 million * $29.1 million reserve release and $0.7 million in net charge-offs led to a negative provision for credit losses of $28.4 million * ACL coverage remained strong at 1.76% (1.80% excluding PPP loans) * Both nonperforming loans and criticized commercial loans declined 6% and 2%, respectively, linked-quarter * The continued impact of excess liquidity, driven mainly by PPP loan forgiveness and Hurricane Ida related deposits, led to a 14 bps compression in reported NIM * TCE ratio 7.71%, down 14 bps, impacted by OCI and excess liquidity

"Fourth quarter's results were a strong finish to a record year," said John M. Hairston, President & CEO. "Our company grew to over $36 billion in total assets, as both loan and deposit growth exceeded expectations. Annual earnings per share were $5.22, compared to a loss in 2020, while operating pre-provision, net revenue (PPNR) totaled $538 million, an increase of $46.5 million, or 9%. The work we started pre-pandemic, coupled with the de-risking efforts in early 2020, have put us on a path to achieving updated corporate strategic objectives (CSOs), including the previously announced path to a 55% efficiency ratio. Expense management efforts are evident as we surpassed our target for the fourth quarter of 2021, while revenue initiatives are underway. Today our credit metrics are among the best in class, and our capital remains solid despite the impact of excess liquidity on our TCE ratio. We are looking forward to carrying the momentum from the year-end finish to a brighter 2022, not only for our company, but for our clients, associates and communities, as we hopefully begin to emerge from today's ongoing pandemic environment."

Loans

Loans totaled $21.1 billion at December 31, 2021, up $248.3 million, or 1%, linked-quarter. Core loans increased $652.5 million from September 30, 2021, more than offsetting the impact of $404.3 million in PPP loan forgiveness. Growth was reflected in markets across the footprint and in specialty lines. Management expects core loans to grow by 6-8% in 2022, while quarterly results will reflect normal seasonality.

Average loans totaled $20.8 billion for the fourth quarter of 2021, down $171.0 million, or 1%, linked-quarter.

Deposits

Total deposits at December 31, 2021 were $30.5 billion, up $1.3 billion, or 4%, from September 30, 2021. Seasonality, excess liquidity related to stimulus and other pandemic-related client funds, and hurricane related recovery proceeds contributed to the fourth quarter of 2021's elevated level of deposits.

DDAs totaled $14.4 billion at December 31, 2021, up $739.4 million, or 5%, from September 30, 2021 and comprised 47% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $11.6 billion at the end of the fourth quarter of 2021, an increase of $358.0 million, or 3%, linked-quarter. Compared to September 30, 2021, time deposits of $1.1 billion were down $78.9 million, or 7%. Interest-bearing public fund deposits increased $239.2 million, or 8%, linked-quarter, ending December 31, 2021 at $3.3 billion.

Management expects 2022 deposit levels to remain flat to slightly down.

Average deposits for the fourth quarter of 2021 were $29.8 billion, up $513.4 million, or 2%, linked-quarter.

Asset Quality

The total allowance for credit losses (ACL) was $371.4 million at December 31, 2021, down $29.1 million from September 30, 2021. During the fourth quarter of 2021, the company recorded a negative provision for credit losses of $28.4 million, compared to a negative provision of $27.0 million in the third quarter of 2021. Net charge-offs totaled $0.7 million in the fourth quarter of 2021, or 0.01% of average total loans on an annualized basis, down from $1.8 million, or 0.03% of average total loans in the third quarter of 2021. The ratio of ACL to period-end loans was 1.76% (1.80% excluding PPP loans) at December 31, 2021, compared to 1.92% (2.00% excluding PPP loans) at September 30, 2021.

The company's overall asset quality metrics continued to improve with commercial criticized and total nonperforming loans down 2% and 6%, respectively, linked-quarter. Nonperforming assets (NPAs) totaled $66.8 million at December 31, 2021, down $5.0 million, or 7%, from September 30, 2021. During the fourth quarter of 2021, total nonperforming loans decreased $4.1 million, or 6%, while ORE and foreclosed assets were down $0.9 million, or 11% linked-quarter. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 0.32% at December 31, 2021, down 2 bps from September 30, 2021.

Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the fourth quarter of 2021 was $231.9 million, a decrease of $5.5 million, or 2%, from the third quarter of 2021.

The net interest margin (NIM) was 2.80% in the fourth quarter of 2021, a decline of 14 bps linked-quarter. Factors driving the NIM compression are mainly related to the impact of additional excess liquidity noted earlier (-10 bps), change in earning asset yield (-4 bps) and forgiveness of over $400 million in PPP loans (-2 bps), partly offset by lower deposit costs (+1 bp) and other (+1 bp).

Average earning assets were $32.9 billion for the fourth quarter of 2021, up $816.3 million, or 3%, from the third quarter of 2021.

Management expects NIM to remain flat to slightly down through mid-year 2022, and then begin to expand.

Noninterest Income

Noninterest income totaled $89.6 million for the fourth quarter of 2021, down $3.7 million, or 4%, from the third quarter of 2021. Included in noninterest income was a $3.6 million gain from storm-related insurance proceeds (nonoperating item). In the third quarter of 2021, noninterest income included a $4.6 million gain from the sale of the remaining Hancock Horizon Funds. Adjusting for these items, noninterest income for the fourth quarter of 2021 totaled $86.0 million, down $2.8 million, or 3%, linked-quarter.

Service charges on deposits were up $0.2 million, or 1%, from the third quarter of 2021. Bankcard and ATM fees were up $0.8 million, or 4%, from the third quarter of 2021, driven by seasonality and improved economic activity and consumer-spending patterns.

Investment and annuity income and insurance fees were up $0.4 million, or 5%, linked-quarter. Trust fees were down $0.5 million, or 3% linked-quarter.

Fees from secondary mortgage operations totaled $5.5 million for the fourth quarter of 2021, down $1.5 million, or 22%, linked-quarter, as we are currently seeing a slowdown in activity compared to 2020's refinance "boom".

Other noninterest income totaled $19.1 million, down $3.1 million, or 14%, from the third quarter of 2021. The decrease is due to a lower level of specialty income.

Noninterest Expense & Taxes

Noninterest expense totaled $182.5 million, down $12.2 million, or 6% linked-quarter. Included in the total was ($1.3) million of net nonoperating expenses related primarily to partial reversals of accruals for Hurricane Ida expense and closed branch writedowns. In the third quarter of 2021, noninterest expense included $3.2 million, related primarily to Hurricane Ida, partly offset by a reversal of severance. Excluding these items, operating expense totaled $183.8 in the fourth quarter of 2021, down $7.7 million, or 4%, linked-quarter.

Personnel expense (operating) totaled $107.2 million in the fourth quarter of 2021, down $6.7 million, or 6%, linked-quarter. The decrease is mainly related to savings associated with efficiency initiatives noted last quarter.

Occupancy and equipment expense totaled $16.0 million in the fourth quarter of 2021, down $0.8 million, or 5%, from the third quarter of 2021. Amortization of intangibles totaled $3.9 million for the fourth quarter of 2021, down $0.2 million, or 4%, linked-quarter.

ORE and other foreclosed assets expense totaled $0.2 million in the fourth quarter of 2021, compared to gains exceeding expenses by $0.4 million in the third quarter of 2021.

Other operating expense totaled $56.4 million in the fourth quarter of 2021, virtually flat linked-quarter.

The effective income tax rate for fourth quarter 2021 was 16.4%. The lower than normal rate was related to the company revising its tax elections in anticipation of potential tax reform to a higher statutory tax rate. The company expects the tax rate to return to a normal quarterly range of 19-20% in 2022, absent any changes in tax laws. The effective income tax rate continues to be less than the statutory rate due primarily to tax-exempt income and tax credits.

Capital

Common stockholders' equity at December 31, 2021 totaled $3.7 billion, up $40.6 million, or 1%, from September 30, 2021. The tangible common equity (TCE) ratio was 7.71%, down 14 bps from September 30, 2021, mainly the result of excess liquidity and a year-end fair value adjustment in OCI. The company's CET1 ratio is estimated to be 11.16% at December 31, 2021, virtually flat linked-quarter. During the fourth quarter of 2021, the company repurchased 393,527 shares of its common stock at an average price of $48.98 per share. This stock repurchase is part of the Board authorization to repurchase up to 4,338,000 shares of the company's common stock, set to expire December 31, 2022. To-date the company has repurchased 449,876 shares under this authorization.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 4:00 p.m. Central Time on Tuesday, January 18, 2022 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock Whitney's website at investors.hancockwhitney.com. A link to the release with additional financial tables, and a link to a slide presentation related to fourth quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 844-200-6205 or 646-904-5544, access code 925066.

An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through January 25, 2022 by dialing 866-813-9403 or 929-458-6194, access code 899285.

About Hancock Whitney

Since the late 1800s, Hancock Whitney has embodied core values of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork, and Personal Responsibility. Hancock Whitney offices and financial centers in Mississippi, Alabama, Florida, Louisiana, and Texas offer comprehensive financial products and services, including traditional and online banking; commercial and small business banking; private banking; trust and investment services; healthcare banking; certain insurance services; and mortgage services. The company also operates a loan production office in Nashville, Tennessee. BauerFinancial, Inc., the nation's leading independent bank rating and analysis firm, consistently recommends Hancock Whitney as one of America's most financially sound banks. More information is available at www.hancockwhitney.com.

Non-GAAP Financial Measures

This news release includes non-GAAP financial measures to describe Hancock Whitney's performance. These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. The reconciliations of those measures to GAAP measures are provided either in the financial tables or in Appendix A thereto.

Consistent with the provisions of subpart 229.1400 of the Securities and Exchange Commission's Regulation S-K, "Disclosures by Bank and Savings and Loan Registrants," the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent ("TE") basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using the statutory federal tax rate to increase tax-exempt interest income to a taxable equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company's performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. These non-GAAP measures may reference the concept "operating." The company uses the term "operating" to describe a financial measure that excludes income or expense considered to be nonoperating in nature. Items identified as nonoperating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in the company's business.

Important Cautionary Statement about Forward-Looking Statements

This news release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations of our performance and financial condition, balance sheet and revenue growth, the provision for credit losses, loan growth expectations, management's predictions about charge-offs for loans, the impact of the COVID-19 pandemic on the economy and our operations, the adequacy of our enterprise risk management framework, the ongoing impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, success of revenue-generating and cost reduction initiatives, the effectiveness of derivative financial instruments and hedging activities to manage risks, projected tax rates, increased cybersecurity risks, including potential business disruptions or financial losses, the adequacy of our internal controls over financial reporting, the financial impact of regulatory requirements and tax reform legislation, the impact of the change in the referenced rate reform, deposit trends, credit quality trends, the impact of natural or man-made disasters, the impact of PPP loans and forgiveness on our results, changes in interest rates, inflation, net interest margin trends, future expense levels, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts, accretion levels and expected returns.

Given the many unknowns and risks being heavily weighted to the downside, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain and inoculate our population against COVID-19 and other variants thereof are unsuccessful and restrictions on movement are re-imposed, the economic impact could continue to be substantial. The COVID-19 outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets.

In addition, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "forecast," "goals," "targets," "initiatives," "focus," "potentially," "probably," "projects," "outlook," or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2020 and in other periodic reports that we file with the SEC.

HANCOCK WHITNEY CORPORATIONFINANCIAL HIGHLIGHTS(Unaudited) Three Months Ended Twelve Months Ended(dollars and commonshare data in 12/31/2021 9/30/2021 12/31/2020 12/31/2021 12/31/2020thousands, exceptper share amounts)NET INCOMENet interest income $ 229,296 $ 234,709 $ 238,286 $ 933,235 $ 942,523

Net interest income 231,931 237,477 241,401 944,414 955,523 (TE) (a)Provision for (28,399 ) (26,955 ) 24,214 (77,494 ) 602,904 credit lossesNoninterest income 89,612 93,361 82,350 364,334 324,428

Noninterest expense 182,462 194,703 193,144 807,007 788,792

Income tax expense 27,102 30,740 (297 ) 104,841 (79,571 )(benefit)Net income (loss) $ 137,743 $ 129,582 $ 103,575 $ 463,215 $ (45,174 )

For informationalpurposes - includedabove, pre-taxNonoperating itemincluded innoninterest income:Gain onhurricane-related $ 3,600 $ - $ - $ 3,600 $ - insurancesettlementGain on sale of - 4,576 - 4,576 - Hancock HorizonFundsGain on sale of - - - 2,800 - Mastercard Class Bcommon stockNonoperating itemsincluded innoninterestexpense:Efficiency (649 ) (1,867 ) - 38,296 - initiativesHurricane related (680 ) 5,092 - 4,412 - expensesLoss on redemption - - - 4,165 - of subordinatednotesProvision forcredit loss - - - - 160,101 associated withenergy loan salePERIOD-END BALANCESHEET DATALoans $ 21,134,282 $ 20,886,015 $ 21,789,931 $ 21,134,282 $ 21,789,931

Securities 8,552,449 8,308,622 7,356,497 8,552,449 7,356,497

Earning assets 33,610,435 32,348,036 30,616,277 33,610,435 30,616,277

Total assets 36,531,205 35,318,308 33,638,602 36,531,205 33,638,602

Noninterest-bearing 14,392,808 13,653,376 12,199,750 14,392,808 12,199,750 depositsTotal deposits 30,465,897 29,208,157 27,697,877 30,465,897 27,697,877

Common 3,670,352 3,629,766 3,439,025 3,670,352 3,439,025 stockholders'equityAVERAGE BALANCESHEET DATALoans $ 20,770,130 $ 20,941,173 $ 22,065,672 $ 21,207,942 $ 22,166,523

Securities (b) 8,378,258 8,368,824 6,921,099 8,105,830 6,398,749

Earning assets 32,913,659 32,097,381 29,875,531 32,060,863 29,235,313

Total assets 35,829,027 35,207,960 33,067,462 35,075,392 32,390,967

Noninterest-bearing 14,126,335 13,535,961 11,759,755 13,323,978 10,779,570 depositsTotal deposits 29,750,665 29,237,306 27,040,447 29,093,709 26,212,317

Common 3,642,003 3,606,087 3,406,646 3,545,255 3,433,099 stockholders'equityCOMMON SHARE DATAEarnings (loss) per $ 1.55 $ 1.46 $ 1.17 $ 5.22 $ (0.54 )share - dilutedCash dividends per 0.27 0.27 0.27 1.08 1.08 shareBook value per 42.31 41.81 39.65 42.31 39.65 share (period-end)Tangible book value 31.64 31.10 28.79 31.64 28.79 per share(period-end)Weighted average 87,132 87,006 86,657 87,027 86,533 number of shares -dilutedPeriod-end number 86,749 86,823 86,728 86,749 86,728 of sharesMarket dataHigh sales price $ 53.61 $ 48.19 $ 34.89 $ 53.61 $ 44.24

Low sales price 45.06 39.07 18.59 32.52 14.32

Period-end closing 50.02 47.12 34.02 50.02 34.02 priceTrading volume 23,889 22,482 27,564 100,904 158,267

PERFORMANCE RATIOSReturn on average 1.53 % 1.46 % 1.25 % 1.32 % (0.14 )assets %

Return on average 15.00 % 14.26 % 12.10 % 13.07 % (1.32 )common equity %

Return on average 20.13 % 19.22 % 16.74 % 17.74 % (1.82 )tangible common %equityTangible common 7.71 % 7.85 % 7.64 % 7.71 % 7.64 %equity ratio (c)Net interest margin 2.80 % 2.94 % 3.22 % 2.95 % 3.27 %(TE)Noninterest income 27.87 % 28.22 % 25.44 % 27.84 % 25.35 %as a percent oftotal revenue (TE)Efficiency ratio 56.57 % 57.44 % 58.23 % 57.29 % 60.07 %(d)Average loan/ 69.81 % 71.62 % 81.60 % 72.90 % 84.57 %deposit ratioAllowance for loanlosses as a 1.62 % 1.78 % 2.07 % 1.62 % 2.07 %percentage ofperiod-end loansAllowance forcredit losses as a 1.76 % 1.92 % 2.20 % 1.76 % 2.20 %percent ofperiod-end loans(e)Annualized net 0.01 % 0.03 % 0.44 % 0.15 % 1.78 %charge-offs toaverage loansAllowance for loanlosses to 527.59 % 506.17 % 305.20 % 527.59 % 305.20 %nonperforming loans+ accruing loans 90days past dueFTE headcount 3,486 3,429 3,986 3,486 3,986

(a) Taxable equivalent (TE) amounts are calculated using a federal income taxrate of 21%.(b) Average securities does not include unrealized holding gains/losses onavailable for sale securities.(c) The tangible common equity ratio is common shareholders' equity lessintangible assets divided by total assets less intangible assets.(d) The efficiency ratio is noninterest expense to total net interest income(TE) and noninterest income, excluding amortization of purchased intangiblesand nonoperating items.(e) The allowance for credit losses includes the allowance for loan and leaselosses and the reserve for unfunded lending commitments.HANCOCK WHITNEY CORPORATIONQUARTERLY FINANCIAL HIGHLIGHTS(Unaudited)Three Months Ended(dollars and common share data in thousands, except per share amounts)12/31/20219/30/20216/30/20213/31/202112/31/2020NET INCOMENet interest income$

229,296

$

234,709

$

234,643

$

234,587

$

238,286

Net interest income (TE) (a)231,931

237,477

237,497

237,509

241,401

Provision for credit losses(28,399

)

(26,955

)

(17,229

)

(4,911

)

24,214

Noninterest income89,612

93,361

94,272

87,089

82,350

Noninterest expense182,462

194,703

236,770

193,072

193,144

Income tax expense (benefit)27,102

30,740

20,656

26,343

(297

)

Net income$

137,743

$

129,582

$

88,718

$

107,172

$

103,575

For informational purposes - included above, pre-taxNonoperating item included in noninterest income:Gain on hurricane-related insurance settlement$

3,600

$

-

$

-

$

-

$

-

Gain on sale of Hancock Horizon Funds-

4,576

-

-

-

Gain on sale of Mastercard Class B common stock-

-

2,800

-

-

Nonoperating items included in noninterest expense:Efficiency initiatives(649

)

(1,867

)

40,812

-

-

Hurricane related expenses(680

)

5,092

-

-

-

Loss on redemption of subordinated notes-

-

4,165

-

-

PERIOD-END BALANCE SHEET DATALoans$

21,134,282

$

20,886,015

$

21,148,530

$

21,664,859

$

21,789,931

Securities8,552,449

8,308,622

8,633,133

8,005,990

7,356,497

Earning assets33,610,435

32,348,036

32,075,450

32,134,637

30,616,277

Total assets36,531,205

35,318,308

35,098,709

35,072,643

33,638,602

Noninterest-bearing deposits14,392,808

13,653,376

13,406,385

13,174,911

12,199,750

Total deposits30,465,897

29,208,157

29,273,107

29,210,520

27,697,877

Common stockholders' equity3,670,352

3,629,766

3,562,901

3,416,903

3,439,025

AVERAGE BALANCE SHEET DATALoans$

20,770,130

$

20,941,173

$

21,388,814

$

21,745,298

$

22,065,672

Securities (b)8,378,258

8,368,824

8,194,812

7,468,541

6,921,099

Earning assets32,913,659

32,097,381

32,195,515

31,015,637

29,875,531

Total assets35,829,027

35,207,960

35,165,684

34,078,200

33,067,462

Noninterest-bearing deposits14,126,335

13,535,961

13,237,796

12,374,235

11,759,755

Total deposits29,750,665

29,237,306

29,228,809

28,138,763

27,040,447

Common stockholders' equity3,642,003

3,606,087

3,488,592

3,441,466

3,406,646

COMMON SHARE DATAEarnings per share - diluted$

1.55

$

1.46

$

1.00

$

1.21

$

1.17

Cash dividends per share0.27

0.27

0.27

0.27

0.27

Book value per share (period-end)42.31

41.81

41.03

39.38

39.65

Tangible book value per share (period-end)31.64

31.10

30.27

28.57

28.79

Weighted average number of shares - diluted87,132

87,006

86,990

86,805

86,657

Period-end number of shares86,749

86,823

86,847

86,777

86,728

Market dataHigh sales price$

53.61

$

48.19

$

50.69

$

47.37

$

34.89

Low sales price45.06

39.07

40.25

32.52

18.59

Period-end closing price50.02

47.12

44.44

42.01

34.02

Trading volume23,889

22,482

25,570

28,963

27,564

PERFORMANCE RATIOSReturn on average assets1.53

%

1.46

%

1.01

%

1.28

%

1.25

%

Return on average common equity15.00

%

14.26

%

10.20

%

12.63

%

12.10

%

Return on average tangible common equity20.13

%

19.22

%

13.94

%

17.38

%

16.74

%

Tangible common equity ratio (c)7.71

%

7.85

%

7.70

%

7.26

%

7.64

%

Net interest margin (TE)2.80

%

2.94

%

2.96

%

3.09

%

3.22

%

Noninterest income as a percentage of total revenue (TE)27.87

%

28.22

%

28.41

%

26.83

%

25.44

%

Efficiency ratio (d)56.57

%

57.44

%

57.01

%

58.12

%

58.23

%

Average loan/deposit ratio69.81

%

71.62

%

73.18

%

77.28

%

81.60

%

Allowance for loan losses as a percentage of period-end loans1.62

%

1.78

%

1.89

%

1.96

%

2.07

%

Allowance for credit losses as a percentage of period-end loans (e)1.76

%

1.92

%

2.03

%

2.11

%

2.20

%

Annualized net charge-offs to average loans0.01

%

0.03

%

0.20

%

0.34

%

0.44

%

Allowance for loan losses to nonperforming loans + accruing loans 90 days past due527.59

%

506.17

%

415.00

%

354.09

%

305.20

%

FTE headcount3,486

3,429

3,626

3,926

3,986

(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

(b) Average securities does not include unrealized holding gains/losses on available for sale securities.

(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.

(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items.

(e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220118005993/en/

CONTACT: Trisha Voltz Carlson, EVP, Investor Relations Manager 504.299.5208 or trisha.carlson@hancockwhitney.com